Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 14, 2002 erstellt
Beschreibung:
Based on an example Loffler claims in his recent paper quot;Miles-Ezzell's WACC Approach Yields Arbitragequot;, that the application of the Miles/Ezzell-WACC may offer arbitrage opportunities. He concludes that the Miles/Ezzell-WACC is not applicable without restrictions. We discuss the example of Loffler and show that not the application of the Miles/Ezzell-WACC but the assumption of a constant cost of capital in the fully equity finance case yields to the arbitrage opportunity